Which of the following is not a result we would expect to result from a tariff on leather shoes?
a. The price of leather shoes in the U.S. would increase
b. The amount of shoes imported into the U.S. would decline.
c. Fewer pairs of shoes would be sold in the U.S.
d. Domestic producers would sell fewer shoes at the higher prices.
d
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A country reports that it has an unplanned inventory increase of $1.0 trillion. Discuss how the economy adjusts until it reaches an unplanned inventory change of $0.0 trillion
What will be an ideal response?
Which of the following helps economists avoid double counting in computing of GDP?
a. Including goods and services produced only within a given area. b. Only include transfer payments made by the government and not individuals. c. Only include capital purchases by corporations and not by family-owned firms. d. Avoiding the use of intermediate goods in calculating GDP.
Which of the following actions could be undertaken if the government wants to reduce a recessionary gap?
A. Increase taxes more than the amount of reduction in government spending. B. Increase taxes and reduce government spending. C. Increase taxes and increase government spending. D. Reduce taxes and increase government spending.
A commodity that buyers and sellers both have will increase the efficiency of the market
Indicate whether the statement is true or false.